The original village of Luz now lies submerged beneath the waters of the Alqueva reservoir. The need to relocate the community led to the construction of a new village that would preserve the working structure of old, keeping existing neighbourhood relations and the original planning. Traditional architectonic features, however, were streamlined and brought into conformity with contemporary styles.

The new village was built in 2002 on a site selected by the community, sitting nearby the old Luz. 212 dwelling houses were erected, along with streets, roads, public squares, business facilities and community facilities: schools, a health centre, sports grounds, a bullring, a washing site, a park and a graveyard. The church of Our Lady of Luz was rebuilt to match the original building, which dated from the 1400s.

Agrarian lands, now provided for by the reservoir’s supplies, have also been shared out among the population, with olive crops and vineyards featuring extensively in the landscape nowadays.